ACCA · Question 27 · Performance measurement and control
Section B - Case 3: GlobalCare
GlobalCare is an international NGO focused on providing clean drinking water in developing nations.
Because GlobalCare does not have a profit motive, it relies heavily on non-financial performance indicators (NFPIs).
Which TWO of the following are valid reasons why NFPIs are particularly important for an NGO like GlobalCare?
Answer options:
Financial metrics do not capture the quality or social impact of the service provided.
NFPIs are legally required by international accounting standards for all NGOs.
They align better with the organization's core mission and long-term objectives.
NFPIs are easier to manipulate than financial indicators, allowing for better PR.
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